order paper  
more phones
Academic writing services  
Custom written essay Book report Research paper Dissertation Resume and CV Editing and proofreading  
main menu
By ordering custom paper you get
  • 24/7 Support
  • Over 100 professional US Writers
  • 300 words per page
  • Flexible discount system
  • FREE revision (within 2 days)
  • Anti-Plagiarism Software Check
we accept
sample essays
Accounting Essays
Admission Essays
Analysis Essays
Art Essays
Biography Essays
Biology Essays
Book Review Essays
Business Essays
Case Studies Essays
Cause and Effect Essays
Character Analysis Essays
Communication Essays
Communication and Media Essays
Compute Technologies Essays
Consideration Essays
Controversial Essays
Description Essays
Economics Essays
Education Essays
Evaluation Essays
Explanation Essays
History Essays
Job Essays
Law Essays
Management Essays
Medicine Essays
Music Essays
Personal Essays
Personal Experience Essays
Persuasive Essays
Persuasive Speech Essays
Philosophy Essays
Political science Essays
Politics Essays
Proposal Essays
Psychology Essays
Reflective Essays
Religion Essays
Research Essays
Response Essays
School Essays
Science Essays
Sociology Essays
Technology Essays
World Literature Essays
Foreign Banks essay
← Business Strategy or IdeaDenver International Airport →

Foreign Banks. Custom Foreign Banks Essay Writing Service || Foreign Banks Essay samples, help

There is restricted entry of foreign banks to the banking industry and these restrictions are meant for the better of the host countries. Foreign banks have greatly raised their presence in the emerging market countries during last years (Detragiache et. al., 2004). I would not recommend the removal of the restrictions to entry and activity due to several underlying reasons. The activities of foreign banks are out to be restricted so that the country does not lose track of its monetary policies and fiscal policies. Despite the severe restrictions, foreign banks had an immediate impact (Lukauskas, 1997).

Inflation is a problem that many countries face and giving examples of less developed countries, they are vulnerable to exploitation from multinational organizations that include banks. Inflation is an important factor in banking and a country's central bank will often attempt to control it (Reif et. al., 1997). In their effort to attract the Foreign Direct Investment, they find themselves losing their national sovereignty by allowing the multinational companies to call the shots. In order to be able to effectively control the money flow in the economy, the activities of foreign banks should be keenly watched and appropriate action should be taken. Given that they have a large float and cannot fall trap to the monetary policies of the government like the bank rate, they are uncontrollable when things fall apart. These banks do not in most cases borrow from the central banks of the host countries when they fall short of cash, but would rather get money from their home countries, something that has very unstable effects on the domestic currency. Some countries limit foreign bank entry, usually to protect the nationalbanking sector, for reasons related to the national sovereignty (Heffernan, 2005).

The original reason that governments put forward their restrictions to foreign banking is in an effort to protect the domestic banks. The banks of the host country’s are at risk if not protected. They will be subjected to unfair competition that will, given some small period of time, get them out of the market. Foreign banks also demonstrated their competitiveness (Lukauskas, 1997). Initially, the customers will benefit because the banks will want to attract customers, but in the long run when all domestic banks are no longer strong to give good competition, the customers will be subjected to harsh conditions due to the fact that they will be vulnerable to the situation.

The emergence of the market authorities is a positive step in order to protect domestic companies. In some foreign markets, US firms trade the regulatory barriers (Reif et. al., 1997). This market cannot be a free market operating on its own and that it is for the larger interest of the country and when the market players engage in some unethical activities, the market and the country are all bound to destabilize.  Therefore, it is the duty of the authorities to monitor the activities of the foreign banks and suspend any banks that are proved to be engaged in unscrupulous banking activities, not health for the domestic economy. It also clears up the confusion as to whether laundering money through a foreign bankis an offence (Hopton, 2009). Some foreign banks may be used as a destination for money to be cleaned and this is done in the country.  

Another problem with the foreign banks is that they prefer providing services to individuals in the urban areas. The population that is in need of the banking procedure is largely in the rural areas and therefore they target where domestic banks are trying to thrive. The ability of the bankto be successful in the host country depended upon local knowledge and contacts (Caprio et. al., 2006).

It is important for the restrictions to be available in that they aid in controlling and maintaining the domestic share of ownership in the company. It is important for any country to have its citizens owning a substantial amount of the company share and also hold important positions in the company. This helps make sure that the interests of the citizens of the particular country are also taken care of. Restrictions on foreign ownership have been the slowest to ease in the financial sector itself (Shilling et. al., 1996).

Thought it is important have a substantial amount of foreign direct investment in a country, it is also of great importance to make sure that the coming of the external investment does not lower the social welfare and has no negative effects to the whole banking system and more so, the domestic banks. Finally, foreign bank entry may stimulate the economic development in emerging markets (Heffernan, 2005).

Foreign Banks. Custom Foreign Banks Essay Writing Service || Foreign Banks Essay samples, help

Order Now
Order nowhesitating

Related essays

  1. Denver International Airport
  2. Business and Government
  3. Business Strategy or Idea
  4. Due Diligence

order now

Order now
why choose us
96% of satisfied returning customers
24/7 customer support
A wide range of services
Up-to-date sources
100% privacy guaranteed
MA/PhD writers
Custom written papers only
Free plagiarism report
Free revision (within 2 days)
Free extras by your request
Direct communication with a writer
Are your writers qualified for the custom writing?
How quick can my order be accomplished?
Is it legal to buy custom essays, term papers or book reports from your company?
Are essays offered by your company truly custom-written?
Is it safe to buy from SupremeEssays.com?
How secure is the payment system of your company?
Can I submit custom essays or term papers done by your company as my own?
How can I contact your company if I've got problems with my ordered paper?

Finally, I've found the real custom writing service . My grades are saying "Thank you, it's been a pleasure to work with you."

Jamal, South Africa

I can't believe you finished my essay under such a short deadline! You saved me from a disaster once again. You guys deliver exactly what you promise. I'll be back. That's for sure!

William H , Kansas, US

contact us
Toll free for US & Canada only. International callers are charged for outgoing calls.

Our phone numbers:
Toll free 1(877)801-5587
Call now 1(702)418-3797
SupremeEssays.com provides custom term paper writing/rewriting services inclusive of research material for assistance purposes only. The term papers should be used with proper reference and are not meant to replace actual assignments.

Get 15% off your first custom essay order

Order now

from $12.99/PAGE